Caloundra councillor Tim Dwyer agreed parts of the meeting should be held in public for transparency.

"I believe if we took the time to disseminate information in our reports a bit more, we would be able to work out what could be released to the public," he said.

"We are a mature enough council for officers to find a better way.

"With issues that have so much interest, it would be good if we could get some information out."

A council spokesman said the report was "confidential" and in closed session in accordance with the Local Government Regulation.

"It contains information relating to other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage," he said.

Mr Smyth said "all infrastructure costs" should be borne by the developer and not passed on to the council.

"Why should Stockland financially benefit from Caloundra South to the financial detriment of residents?" he asked.